Written by Joy Lee
Friday, 09 October 2009 00:01
KUALA LUMPUR: With the FBM KLCI hitting a fresh year high of 1,230.09 on Thursday, Oct 8, underpinned by CIMB's sharp gains, the question on most investors' minds is whether the extended rally can continue.
The risk appetite would be supported by the continued firmer close on Wall Street where the Dow Jones industrial average rose 61.29 points, or 0.63 percent, to end at 9,786.87. The Standard & Poor's 500 Index gained 7.90 points, or 0.75 percent, to 1,065.48. The Nasdaq Composite Index advanced 13.60 points, or 0.64 percent, at 2,123.93.
The other fresh positive data coming out of the US were U.S. retailers posting generally strong same-store sales figures, while the Labor Department said the number of U.S. workers filing new jobless claims slid to a nine-month low last week.
But investors should be ready to lock in gains on stocks which had run-up, especially ahead of the weekend. A recent Macquarie research report said stocks are due a correction of 20–30%, in its view.
"A potential catalyst is the coming Maxis IPO, which is expected to remove RM10 billion of liquidity from the market.
"PLANTATION []s in particular look significantly overvalued, and because the impact of El Nino is negligible, we are looking at a bumper soya crop. We could see CPO prices retreat to the RM1,800 level," it said.
Stocks to watch today are Proton, CIMB, Hai-O and Xingquan.
Proton is reported to be in talks with India's Hero Group, the largest manufacturer of motorcycles in India by volume. For more, read The Edge FinancialDaily.
The string on investment advisory deals arranged by CIMB, including IPOs and positive outlook for the economy saw CIMB was emerging as the biggest gainer and among the most actively traded stocks. The counter added 52 sen to RM12.12. The bank launched two series of call warrants on Wynn Macau Ltd on Oct 7.
These call warrants are expected to commence trading on Bursa Malaysia at 10am on Oct 9, coinciding with the expected listing of Wynn Macau on the Stock Exchange of Hong Kong Ltd. Wynn is among the biggest gaming operators in Macau.
HAI-O ENTERPRISE BHD [] is setting foot in the TECHNOLOGY [] realm with a collaboration with the Institute of Engineering Thermophysics of the Chinese Academy of Sciences (IET) to do research on scientific and commercial applications of high intensity heat transfer technology.
China-based shoemaker Xingquan International Sports Holdings Ltd recorded a strong growth to its order of about 56%, equivalent to about a total of RMB500 million (RM248 million) in its recently concluded Spring/Summer 2010 Sales Fair compared to the same event last year.
"Leveraging on our clear brand positioning and a series of effective marketing activities, ADDNICE brand is well received by our target customers. We will continue to launch various marketing activities in the future and devote to maintain stable and sustainable growth in our business," chairman and chief executive officer Wu Qingquan said.
Meanwhile, Prime Minister Datuk Seri Najib Razak was quoted saying the government had not made any formal decision on plans to sell PLUS EXPRESSWAYS BHD [] and other toll concessionaires in the country.
Najib said he had yet to see the toll concessionaires takeover proposal. "We have not taken any formal decision," Bernama quoted the prime minister as telling a media briefing on Wednesday, the final day of his four-day official visit to France.
A private entity Asas Serba Sdn Bhd, backed by four businessmen, including former PLUS top officials, had submitted a proposal under a private funding initiative (PFI) to the government to take over the management and operation of all toll highway concession companies, including their debts and equities on a willing-buyer willing-seller basis.
Top Glove posted stellar results, beating consensus estimates. Its net profit doubled to RM56.83 million on the back of rising demand for rubber gloves due to the outbreak of the Influenza A (H1N1) pandemic.
It also proposed a final dividend of nine sen and a special dividend of six sen, bringing its total dividend for FY09 to 22 sen. The counter gained 18 sen at yesterday's close of RM8.15.
Friday, 09 October 2009 00:01
KUALA LUMPUR: With the FBM KLCI hitting a fresh year high of 1,230.09 on Thursday, Oct 8, underpinned by CIMB's sharp gains, the question on most investors' minds is whether the extended rally can continue.
The risk appetite would be supported by the continued firmer close on Wall Street where the Dow Jones industrial average rose 61.29 points, or 0.63 percent, to end at 9,786.87. The Standard & Poor's 500 Index gained 7.90 points, or 0.75 percent, to 1,065.48. The Nasdaq Composite Index advanced 13.60 points, or 0.64 percent, at 2,123.93.
The other fresh positive data coming out of the US were U.S. retailers posting generally strong same-store sales figures, while the Labor Department said the number of U.S. workers filing new jobless claims slid to a nine-month low last week.
But investors should be ready to lock in gains on stocks which had run-up, especially ahead of the weekend. A recent Macquarie research report said stocks are due a correction of 20–30%, in its view.
"A potential catalyst is the coming Maxis IPO, which is expected to remove RM10 billion of liquidity from the market.
"PLANTATION []s in particular look significantly overvalued, and because the impact of El Nino is negligible, we are looking at a bumper soya crop. We could see CPO prices retreat to the RM1,800 level," it said.
Stocks to watch today are Proton, CIMB, Hai-O and Xingquan.
Proton is reported to be in talks with India's Hero Group, the largest manufacturer of motorcycles in India by volume. For more, read The Edge FinancialDaily.
The string on investment advisory deals arranged by CIMB, including IPOs and positive outlook for the economy saw CIMB was emerging as the biggest gainer and among the most actively traded stocks. The counter added 52 sen to RM12.12. The bank launched two series of call warrants on Wynn Macau Ltd on Oct 7.
These call warrants are expected to commence trading on Bursa Malaysia at 10am on Oct 9, coinciding with the expected listing of Wynn Macau on the Stock Exchange of Hong Kong Ltd. Wynn is among the biggest gaming operators in Macau.
HAI-O ENTERPRISE BHD [] is setting foot in the TECHNOLOGY [] realm with a collaboration with the Institute of Engineering Thermophysics of the Chinese Academy of Sciences (IET) to do research on scientific and commercial applications of high intensity heat transfer technology.
China-based shoemaker Xingquan International Sports Holdings Ltd recorded a strong growth to its order of about 56%, equivalent to about a total of RMB500 million (RM248 million) in its recently concluded Spring/Summer 2010 Sales Fair compared to the same event last year.
"Leveraging on our clear brand positioning and a series of effective marketing activities, ADDNICE brand is well received by our target customers. We will continue to launch various marketing activities in the future and devote to maintain stable and sustainable growth in our business," chairman and chief executive officer Wu Qingquan said.
Meanwhile, Prime Minister Datuk Seri Najib Razak was quoted saying the government had not made any formal decision on plans to sell PLUS EXPRESSWAYS BHD [] and other toll concessionaires in the country.
Najib said he had yet to see the toll concessionaires takeover proposal. "We have not taken any formal decision," Bernama quoted the prime minister as telling a media briefing on Wednesday, the final day of his four-day official visit to France.
A private entity Asas Serba Sdn Bhd, backed by four businessmen, including former PLUS top officials, had submitted a proposal under a private funding initiative (PFI) to the government to take over the management and operation of all toll highway concession companies, including their debts and equities on a willing-buyer willing-seller basis.
Top Glove posted stellar results, beating consensus estimates. Its net profit doubled to RM56.83 million on the back of rising demand for rubber gloves due to the outbreak of the Influenza A (H1N1) pandemic.
It also proposed a final dividend of nine sen and a special dividend of six sen, bringing its total dividend for FY09 to 22 sen. The counter gained 18 sen at yesterday's close of RM8.15.
